Question
A year ago, Dalia bought a Malaysian government bond for RM1,020 with a 5% coupon. However, over the course of the next 12 months, interest
A year ago, Dalia bought a Malaysian government bond for RM1,020 with a 5% coupon. However, over the course of the next 12 months, interest rates drop sharply. So, she decided to sell the bond at the current price of RM1,100.
a)Find the current yield that existed on this bond one year ago and today. (4 marks)
b)Calculate the HPR return for Dalia from this bond. (4 marks)
[Total: 8 Marks]
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A Financial Crisis Manual Reflections And The Road Ahead
Authors: Dimitrios D. Thomakos , Platon Monokroussos, Konstantinos I. Nikolopoulos
1st Edition
1137448296, 113744830X, 9781137448293, 9781137448309
